ORLANDO, FLA. — Hurricane Irma made landfall in the Florida Keys on Sept. 10 as a Category 3 storm, and later that day made a second landfall at Marco Island on Florida’s west coast before barreling north through the state. Cities on both coasts experienced storm surges and high winds, but both short- and long-term preparations significantly minimized Irma’s impact on commercial properties, according to a recent report from CBRE.
In the short term, evacuation plans, emergency fuel and power supply arrangements, as well as contingency plans, were critical preparedness factors. Roughly 6.3 million people were asked to evacuate in the days leading up to the storm.
Long-term preparation including enhanced building codes and infrastructure readiness was critical to the state’s ability to both withstand damage and assess how quickly infrastructure and power losses could be restored.
Except for the Florida Keys and certain parts of Jacksonville, flood and wind damage to retail properties was minimal. Approximately one-third of the 240 office buildings managed by CBRE’s Asset Services division were impacted by Irma, according to the report. Of those, the majority only experienced power loss, and less than 5 percent sustained water and wind damage.
While retail and hotel properties in the Keys and the San Marco area of Jacksonville experienced more significant damage, officials are on track to have the areas open for tourism by late October.
Since Hurricane Andrew in 1992, the state of Florida has worked to upgrade its buildings codes in order to protect real estate properties from hurricanes. Construction standards have been enacted to withstand wind speeds of up to 175 miles per hour, or a Category 5 hurricane. In addition to wind speed standards, South Florida has invested heavily in pump systems and building standards that enable more efficient flood drainage.
Anywhere between 6 million and 12 million were without power once the storm made landfall, but less than one week after the storm, almost 100 percent of Florida’s mainland power grid and infrastructure were operational, minimizing business losses.
Florida’s legislature estimates initial damage between $25 billion and $45 billion. Tourism and agriculture were both impacted by the storm, and the impact on agriculture will likely be more severe due to the destruction of crops. The tourist industry will likely see only a short-term lull.
Overall, the Florida economy will remain largely unaffected by Irma over the long-term, as there was minimal commercial property damage and no long-term loss of power.
— Camren Skelton